tag:blogger.com,1999:blog-3276688108456391559.post4095210392845885849..comments2024-02-27T13:41:46.698+08:00Comments on SG Young Investment: Early Retirement Through Finding Work That You Enjoy DoingSGYIhttp://www.blogger.com/profile/09445517891969740960noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3276688108456391559.post-72166137490295686652019-08-10T08:57:59.596+08:002019-08-10T08:57:59.596+08:00Thank you for your sharing! Yes indeed a plan is j...Thank you for your sharing! Yes indeed a plan is just a plan and sometimes what happens in real life will be different. Even when we are still working, we also can't be certain if we still have a job or will be retrenched. In times like this nothing is certain anymore. <br /><br />We also have to take into consideration that life may throw us some shit along the way such as sickness of ourselves or family members. This we have to adjust accordingly. <br /><br />While nothing is certain, having a plan lets us get back on track when the dust has settled after going through tribulations. The plan will also have to be adjusted time and time again along the way. Some may reach faster while some slower in their goals. SGYIhttps://www.blogger.com/profile/09445517891969740960noreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-41748054136077599052019-08-10T08:26:56.926+08:002019-08-10T08:26:56.926+08:00People generally know the math of compounding inte...People generally know the math of compounding interests. What people are looking for is the "how", ie how to achieve the compounding interest (for eg 5% pa) on a consistent basis, over 20 years, 30 years etc...<br /><br />What you have presented so far, are just the math. Knowledge of the math, theories does not mean anything if it cannot be translated into actionable plans / steps that people can execute to achieve the results.<br /><br />Among the various investments (equities, property and CPF) that I have, only the CPF provides some semblance of a consistent return. Even then, the CPF interest rates were changed (lowered) a few times over the years and I have lived through those periods.<br /><br />The dividends I received from my equity holdings vary year to year. I cannot plan on it being the same or grow each year! Last year it was $65,000, this year? I am not sure.<br /><br />Likewise for my rental income, I cannot confidently plan on receiving the same amount year after year. If I couldnt sign on a tenant, there is no rental income straight away.<br /><br />As you can see, on paper it is easy to project how much your wealth will grow with various ROI, but it is a different story in real life. And when it comes to investment, you might even see your wealth diminish in a bad market!!<br /><br />As mentioned earlier, only the CPF is able to provide consistent returns, albeit at only 2.5% for the OA, and 4 to 6% for the other accounts (MA, SA and RA). <br /><br />So to ensure that we have consistent cashflow in our retirement, what we did was to channel some our dividends and rental income into our CPF regularly. <br /><br />This is the cashflow we planned (theory) to support our retirement (as a couple):<br /><br />Age: 62 to 64<br /><br />Dividend: $65,000 pa (confidence level - 75%)<br />Rental : $36,000 pa (confidence level - 75%)<br />OA & SA interest : $50,000 pa (confidence level - 99%)<br />SRS drawdown : $30,000 pa (confidence level - 100%)<br /><br />Total annual projected cashflow : $181,000<br /><br />Age 65 to 71<br /><br />Dividend: $65,000 pa (confidence level - 75%)<br />Rental : $36,000 pa (confidence level - 75%)<br />OA & SA interest : $50,000 pa (confidence level - 99%)<br />SRS drawdown : $30,000 pa (confidence level - 100%)<br />CPF Life payout : $40,000 (confidence level - 99.5%)<br /><br />Total annual projected cashflow : $221,000<br /><br />Age : from 72 onwards<br /><br />Dividend: $65,000 pa (confidence level - 75%)<br />Rental : $36,000 pa (confidence level - 75%)<br />OA & SA interest : $50,000 pa (confidence level - 99%)<br />CPF Life : $40,000 pa (confidence level- 99.5%)<br /><br />Total annual cashflow : $191,000<br /><br />As you can see, it is easy to plan and nice to look at. The real challenge is to make the plan a reality.<br /><br />Our passive income last year managed to hit $180,000. This year, we are not certain.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-3988594393667400892019-08-08T07:38:30.445+08:002019-08-08T07:38:30.445+08:00Hi Uncle CW,
That's true. Because of no freed...Hi Uncle CW,<br /><br />That's true. Because of no freedom of time having to stuck in office and clearing the work which is never ending. <br /><br />That's why if we enjoy the work then maybe it feels better. SGYIhttps://www.blogger.com/profile/09445517891969740960noreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-89666784538326004062019-08-07T22:07:38.020+08:002019-08-07T22:07:38.020+08:00It is not the job. It is their workload that many ...It is not the job. It is their workload that many hate it!Createwealth8888https://www.blogger.com/profile/08563834016250153049noreply@blogger.com